Carton manufacturer announces management buyout deal
Managing Director, Mark Kerridge and Commercial Director, Nick Benson, have led the buyout of the printed folding carton manufacturer. The firm said the buyout took place as a result of the decision taken by two principal family shareholders to surrender their stake in the company.
Following the closure of the deal, the company said it did not expect much change to occur and that it would be “business as usual”, however, it did hint at possible further expansion in both the UK and Europe, “but only when the time is right.”
The British firm supplies carton packaging for the food industry and its manufacturing facilities are spread across four sites including two in the North East, one in Crewe and its main one in Bardon. It is currently a £108m turnover organisation and is seeking to reach sales of £120m in 2012.
‘Sufficient money to carry business forward’
Speaking to FoodProductionDaily.com, Nick Benson said the management buyout came as a result of the decision taken by two Benson family members, Andrew and John Benson, to retire from their respective roles within the company.
Benson confirmed the buyout covered the “vast majority” of shares and that the transaction would now provide “sufficient money to carry the business forward.”
However, Benson said that although the buyout will enable further expansion, the company also wishes to continue with its current business strategy of producing packaging products for the food market.
Benson added that there would be no changes to the existing workforce which currently consists of more than 900 personnel working across all four sites.
Further expansion plans
Benson told this publication that whilst there will be “no great change”, the company will monitor the situation in the UK and Europe and “seek to gain more customers.”
The Benson Group has already acquired three additional packaging businesses and Benson said that there may be “further possible acquisitions if the right company comes along.”
The firm said the buyout offered “a number of potential opportunities” but added it was “too early to provide any further details on these.”
With regards to expanding in Europe, Benson explained that the company already exports to countries such as Belgium, Holland, France and Germany, to a “reasonable degree.”
He said that the company is now “keen to expand” further in mainland Europe and “possibly” venture into Eastern Europe as well, but for the time being is “monitoring the current Euro situation”, before making “any significant decisions.”
